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Astor Group - Brazil Intelligence Brochure


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Astor Group’s Brazil Intelligence practice helps foreign companies and financial institutions better navigate Brazil.

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Astor Group - Brazil Intelligence Brochure

  1. 1. BRAZIL INTELLIGENCE Astor Group’s Brazil Intelligence practice helps foreign companies and financial institutions better navigate Brazil. OUR BUSINESS No matter the industry, operating in Brazil requires in-depth local knowledge and intimate access to senior decision makers. Astor Group provides both. Clients depend on our research and analyses, due diligence, legal expertise and regulatory support to reduce costs and increase speed to market. Once established, we provide operational support and ongoing access to a massive network of Brazil’s top deals and dealmakers. OUR VALUE Our deep knowledge and relationships allow clients to significantly reduce the cost of Brazilian expansion. With offices in New York, Miami and Rio de Janeiro, we seamlessly bridge international and local practices so clients can focus on core activities. OUR TEAM Our team includes Brazilian and international professionals with extensive experience executing strategic, legal, financial and marketing deliverables. Our expansive relationships, local knowledge and negotiating expertise ensure that our clients achieve superior results no matter the industry or economic climate.
  2. 2. PRACTICE AREAS Whether engaged to introduce local partners or negotiate local partnerships, we frequently provide the following services: ANALYZE • Provide analyses on local markets, customers and competition • Identify local partners to help with sales, distribution or acquisitions • Perform legal, regulatory, financial and strategic due diligence including evaluating management capabilities, benchmarking operational performance, interviewing customers and suppliers and validating business models and projections EXECUTE • Negotiate joint ventures, mergers and acquisitions and distribution deals • Navigate local bureaucracy • Build local businesses (e.g. hire local professionals and staff local offices) ACCESS • Maintain frequent contact with the most important government officials and industry leaders • Provide local presence from offices in Rio de Janeiro, New York and Miami
  3. 3. GET SMART QUICKLY • Local culture: Understand local business practices, customs and regional distinctions • Local relationships: Leverage relationships to cut through bureaucracy • Local market: Evaluate competitors, customers, suppliers • Local partners: Bring together advisors, distributors, limitadas • Local compliance: Understand laws and regulations; work with government officials and regulators • Local team: Work only with vetted employees and leading professionals Higher Impact Faster Entry Lower Cost Lower Risk
  4. 4. MARKET ENTRY Choose Market • Identify opportunities in a wide range of industries and market segments Segments • Evaluate growth prospects and competitive landscape for each Strategize • Clarify value proposition and segment focus, design indirect channels and Entry select optimal local partners • Monitor compliance with all local laws and regulations Support • Partner supervision and relationship management Operations • Government, industry and stakeholder engagement Grow Your • Explore parallel opportunities and expansion Business • Devise organic growth and M&A alternatives
  5. 5. UNDERSTAND BRAZILIAN RELATIONSHIPS Description Illustrative Comments Relationships • Significant emphasis on strength of personal • 'No one in Brazil will do business with a relationships when selecting partners stranger. Companies that are here are better able to build true friendships.' Concentration • On average, individuals have relationships with • 'All of my partners need to invest more in the fewer institutions than clients in other regions personal relationship. I don’t buy products. I build relationships.' Currency • Place significant importance in holding • 'I have moved a higher portion of my positions Protection positions in strong currency to avoid volatility to foreign currencies until the new president is elected and his/her policies are clear.’ Local • High importance of access to local • 'DI rates are very attractive for their level of Opportunities opportunities risk.' • 'I am bullish on local markets and want to take advantage of them.' Tax and • Knowledge of taxes and offshore regulations • 'I pay taxes, but why should I be the only one Regulation are highly valued paying full?' • 'Regulations on offshore transfers are still ambiguous and incomplete.'
  6. 6. BRAZILIAN MARKET IS POISED FOR GROWTH Brazilian fundamentals are strong and getting stronger • 2009 GDP ~US$1.5 trillion; projected growth for 2010 of 5-6% • Easier access to credit and greater spending power will sustain increased domestic consumption • If current trends hold, Brazil could soon become one of the world’s five largest economies Brazil’s equity market provides an attractive exit for many companies • Bovespa index rose 82.7% in 2009 • Foreign direct investment is expected to reach $US45 billion in 2010 • Number of IPOs has accelerated in recent years –120+ IPOs from 2004-2009, roughly 1/3 related to PE/VC portfolio companies; IPOs grew 45% in 2009 to US$41.7 billion The Olympic Games and World Cup are expected to have a transformative effect on Brazil – Banco do Brasil estimates total investment will be US$70 billion – Key areas of infrastructure investment include: stadiums, airports, hotels, urban transportation, security, railways and highway, drainage and sanitation and telecommunications Sources: Brazilian Central Bank, Banco do Brasil, Bovespa, The Economist, ABVCAP 6
  7. 7. BRAZIL INTELLIGENCE CONTACTS Arnon de Mello The head of Astor Group’s Brazil practice, Arnon de Mello was born in Rio de Janeiro and returned to open Astor Group’s Brazil office in 2009. Prior to joining Astor Group, Arnon worked with Lehman Brothers and Barclays Capital. Arnon previously served as director of Gazeta de Alagoas, a Brazilian media conglomerate, and as chairman of Centro Sportivo Alagoano (CSA), a professional soccer team located in the northeastern Brazilian state of Alagoas. Arnon is a founding partner of Loops, an organization that helps Brazilian NGOs and corporations leverage technologies to mobilize group resources. Arnon has extensive experience working with companies in the US and Brazil and serves on numerous boards of directors. Arnon received a MBA from MIT, a MPA from Harvard University and a BA from the University of Chicago. Please contact Arnon at, 305.395.7570 or 55.21.3592.6955 Seth Zalkin The managing partner of Astor Group, Seth Zalkin began his career as a management consultant and later as a corporate attorney with Paul, Weiss, Rifkind, Wharton & Garrison where he advised companies such as the New York Yankees, Warner Music, Soros Fund Management and Oaktree Capital Management. Seth has served as Chief Executive Officer of numerous technology and media companies. Seth serves on numerous boards of directors and is admitted to the New York bar. He is currently active in the Association for Corporate Growth, the Turnaround Management Association and the National Business Incubator Association. Seth received a JD from the University of Pennsylvania School of Law and a BA from Duke University. Please contact Seth at or 305.395.3774
  8. 8. ASTOR GROUP Astor Group is a global advisory firm that partners with companies to expand into new markets, solve financial and strategic challenges, buy and sell businesses and raise capital. Our operational experience, expansive relationships and negotiating expertise ensure that our clients achieve superior results no matter the industry or economic climate.
  9. 9. Avenue Ataulfo de Paiva, 255/302 ∙ Leblon, Rio de Janeiro 22440-032 Telephone: 55.21.3592.6955 5 East 57th Street, 16th Floor ∙ New York, New York 10022 Telephone: 212.633.1399 1680 Michigan Avenue, Suite 910 ∙ Miami Beach, Florida 33139 Telephone: 305.395.3774